Disgorgements Can Be Discharged In Ch. 7: 9th Circ.

Law360, New York (September 19, 2011, 4:52 PM EDT) -- The Ninth Circuit on Monday decided that debt stemming from a securities law violation could be discharged from certain bankruptcy proceedings if the debtor had not been held responsible for breaking a statute, allowing an attorney to avoid giving up nearly $600,000.

The three-judge panel weighed in on a law that bars debt from being discharged in Chapter 7 bankruptcy proceedings if it was the result of a securities law violation, finding that the debt-discharge exception only applies to those who actually break securities laws....
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